Effective January 1, due to new eligibility rules, 70,253 children were switched
from NC Health Choice to Medicaid. As a result, the N.C. Department of Health
and Human Services issued new Medicaid cards to these affected recipients who
transitioned from NC Health Choice to Medicaid.

The Department of Health
and Human Services has determined 48,752 of these new Medicaid cards were mailed
to the incorrect recipients. The incorrect card shows the child's name, Medicaid
identification number, date of birth and primary care physician.

The
Department has begun a careful review of this incident to determine how it
occurred and to ensure personal information is protected. DHHS knows exactly
which Medicaid cards were sent to which addresses, and is rapidly working to
issue correct Medicaid cards.

This incident does not affect Medicaid
coverage, and benefits are not affected. Medicaid recipients who have received
incorrect Medicaid cards will be sent a correct Medicaid card with specific
instructions on what to do with the incorrect Medicaid card. In the meantime,
children needing services without a correct Medicaid ID card can use their NC
Health Choice ID number or card, which is still valid. Providers are also able
to verify eligibility in order to deliver services.

The Department of
Health and Human Services takes the privacy of Medicaid recipients very
seriously and is working to put measures in place to monitor the use of affected
Medicaid cards for potential fraud. We regret this incident occurred and are
working to ensure it is corrected as soon as possible.

If individuals
have questions about this incident, they are advised to call the DHHS Customer
Service Center Number located on the back of their Medicaid card,
1-800-662-7030.